Value ranges are growing more popular in the UK as shoppers look to save money and traditional retailers compete against the fast-growing discounters.
Tesco has added 100 products to its discount range. The new products will include a kids range, under the name Molly and Jack, and skincare lines. These products complement the 350 SKUs initially launched last year. Tesco says 25% of its customers had tried the discount products. “If you take Tesco Value and the discount range together, we have an Aldi within Tesco,” the retailer said.
Sainsbury reports big increases in its value line. “We are seeing a significant switch among consumers to own brand products—sales of Sainsbury’s Basics range are up 40% year-on-year,” an executive said. “Our research also shows 30% of shoppers claim once they’ve switched from branded to own-label products they won’t switch back.”
Spar plans to revamp its entire 900 SKU private label range early this year with an emphasis on offering “value” during the recession. Products will be rebranded as Spar Extra Value, using new red and white packaging designs and price marking.
In addition, Somerfield is ramping up its Simply Value economy line in response to the recession, while Musgrave, which own Londis and Budgens stores, has launched 50 products under its Good Value label.
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